Credit Unions Pose Questions On Corporate Situation
ALEXANDRIA, Va. – More than 2,800 people logged in to yesterday’s NCUA Virtual Town Hall Meeting, looking for answers to what the future holds now that five corporate credit unions have been conserved and a final rule on corporates has been issued.
Among the points made during the Q&A session after the hour-long presentation:
• Diane Addington, formerly Genisys CU CEO, is heading up Southwest Corporate in Dallas, Charles Furbee is heading up Members United in Illinois, and Bill White has taken the reins at Constitution Corporate in Connecticut. White was formerly the COO at the corporate. Furbee previously worked at the Federal Home Loan Bank of Chicago.
• Members of the conserved corporates will not be required to place additional capital in the bridge entities that will be established under the good bank/bad bank model (see related story).
• The boards, supervisory committees and CEOs of all of the conserved corporates have been removed.
• NCUA is investigating whether it will take any legal action against the boards and CEOs of the newly conserved corporates.
• NCUA is working to clarify media reports of a “bailout” to make sure members of Congress and the public at large understand that no tax dollars were involved in this plan. “Clearly, this is not a bail out,” NUA Chairman Debbie Matz said. “Ironically enough, the Wall Street Journal article was a good article, but the headline was horrible.” (See related CU Journal report)
• The so-called merger registry will debut on Oct. 1, just in time for the September Call Report.
• Although the corporate plan does offer the opportunity for credit unions to file legal claims – and, indeed NCUA is already sending out claims receipts – the agency’s Scott Hunt repeatedly noted that it is “extremely unlikely” there will be anything left to make good on those claims.
In what proved to be a rare moment of levity during the webinar, one participant asked why NCUA didn’t just make the conserved corporates convert to banks, to which Matz laughingly replied, “The FDIC is not stupid, they wouldn’t take them.”